Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

14.INCOME TAXES

The Company’s effective income tax rate was 26.9% and 20.8% for the nine months ended September 30, 2022 and 2021, respectively. The increase in effective tax rate for the nine months ended September 30, 2022 is primarily related to a decrease of excess tax benefits from stock-based compensation.

On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. Based on our current analysis of the provisions, we do not believe this legislation will have a material impact on our consolidated financial statements.